On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,390 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Office equipment Land Accounts payable Common stock $ 13,210 Cash dividends 13,320 Consulting revenue 2,720 Rent expense 17,350 Salaries expense 45,910 Telephone expense 7,970 Miscellaneous expenses 83,390 $ 1,460 13,320 2,950 6,290 830 640 Also assume the following: a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. b. The company's $17,350 equipment purchase is paid in cash. c. Cash paid to employees is $1,040. The accounts payable balance of $7,970 consists of the $2.720 office supplies purchase and $5,250 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $13,320 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.) Answer is not complete. ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid for rent $ 0 Cash paid to employees Cash paid for telephone expenses Cash paid for miscellaneous expenses 0000 (2.950) (1,040) O (830) (640) Net cash used by operating activities $ (5,460) Cash flows from investing activities Cash paid for office equipment (17,350) Net cash used by investing activities (17,350) Cash flows from financing activities Cash dividends to shareholders (1,460) Net cash provided by financing activities Net increase in cash Cash balance, December 1 Cash balance, December 31 $ (1,460) (24,270) O 37,480 13.210